Tag Archives: shareholders

A One-Two Punch to the Economy: Climate Vulnerability and Corporate Innovation Strategies 

By | July 6, 2023

Climate change poses one of the most pressing risks to our society and the global economy, with profound and wide-ranging consequences. Research has shown that rising temperatures and tropical cyclones reduce the global economic growth rate by approximately 0.25 and 1.3 percentage points per year (Burke, Hsiang, and Miguel, 2015; Carleton and Hsiang, 2016). Despite… Read More »

Executive Compensation with Socially Responsible Shareholders 

By | July 5, 2023

In the last few years, there has been an increase in the proportion of socially and environmentally responsible shareholders. These shareholders are not solely concerned with the profits generated by a firm. Instead, they also care about its social and environmental impact. Some empirical studies have already established that this has implications for firms’ stock… Read More »

Board’s Digital Oversight and Expertise: Some Initial Findings Using NLP Methods 

By | June 29, 2023

In today’s rapidly changing business landscape, new technologies have become essential. The digital revolution, built on data-driven innovations, has permanently shifted how businesses collect, analyze, and utilize information. This transformation comes with significant challenges. As companies navigate the digital landscape, they must address cybersecurity, privacy, and ethical considerations alongside legal requirements.   In our recent paper,… Read More »

What 21st-Century Free Speech Law Means for Securities Regulation 

By | June 22, 2023

Securities law has long regulated speech with little (if any) First Amendment controversy. Yet the contemporary antiregulatory turn in the Supreme Court’s Free Speech Clause doctrine has inspired increasingly successful efforts to resist regulation in various settings—settings that now include securities law. Among other things, the Court now scrutinizes the government’s compelled informational disclosures with… Read More »

The Power of Multiple Large Shareholders in Strengthening Shareholder Protection 

By | March 31, 2023

Over the past few decades, the ownership structure of American firms has undergone a significant transformation. Gone are the days of dispersed ownership, where most firms were owned by thousands of individuals directly investing their savings in the stock exchange. Instead, we now have a complex web of institutional investors and powerful individual or family… Read More »

The Value of Undiversified Shareholder Engagement 

By | December 22, 2022

Modern capital markets facilitate the separation of ownership and control. This allows shareholders to diversify their portfolios and firms to undertake value-generating projects regardless of their level of idiosyncratic risk. However, the universal push for diversification often means that shareholders do not bear sufficient risk to incentivize them to monitor the firms in their portfolios.… Read More »


By | July 30, 2021

Legal systems around the world apply various strategies to mitigate agency costs between controlling and minority shareholders. In my recent paper, I provide a systematic review of the transnational law on controlling shareholder’s loyalty and care obligations by exploring the cultural, historical, and socio-economic backgrounds embodied in different doctrinal choices. A. Doctrinal Strategies for Regulating Controlling… Read More »

Does CSR Engender Trust? Evidence From Investor Reactions to Corporate Disclosures

By | July 7, 2021

Growth in corporate social responsibility (CSR) practices is an undeniable fact of modern business. 90% of S&P 500 firms published a corporate sustainability report in 2020, up from merely 20% in 2011. As more and more firms adopt CSR practices, a key question emerges: how do such activities impact investor perceptions of firms? Proponents of… Read More »